Where Angels Tread and VCs Also Dare

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Where Angels Tread and VCs Also Dare
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Where Angels Tread and VCs Also Dare Players
and Agendas

• Founders / Entrepreneurs
• Families, Friends and Fools
• Business Angels,
• Managers
• Employees
• VCs Rounds One to .How Many ?
• Funds of Funds VCs Limited Partners
• Advisors
• Corporates Customers and/or Investors
• Business and General Community

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Sources Of Business Finance
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Sources Of BusinessFinance

• Our Money - Our decisions - no strings
• Family and Friends - Few strings, great faiths
• Business Angels - Money plus - use my
  expertise
• Seed Funds - Support proof of principle
• Early Stage - Management support - experience of
  roll-out
• Expansion - Lower level of support - but
  experience of business development
• Pre-IPO - Opportunistic
• Banks - Not risk takers can be helpful
• Behind the VCs Funds of Funds and Institutions

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Stages Of Investment
1. Seed Developing IPR, unlikely to have full
time employees, and may well have no business
premises. Working on proof of principle
2. Start up Companies in the process of being set
up, with limited trading. Involved in product
development and initial marketing

• 3. Early stage
• Companies that have completed the proof of
  principle, own some IPR, have a management team
  substantially in place, requiring funds for
  manufacturing and/or licensing, and sales

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Stages Of Investment

• 4. Expansion
• Established companies, with a full management
  team and generating sales, and require further
  finance to break into new markets. The
  definition Expansion often creates confusion

5. Pre IPO Final round prior to a listing on a
recognised Stock Exchange. Can be referred to as
Expansion funding
6. Later stage Many variants M and A, MBO, MBI
etc.
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Cambridge Venture Capital Scene Estimated total
value of funds 750millions (new RDA Fund will
add 20-30m in 2002)
Venture Capital Funds with Regional Associations

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Todays peacock is tomorrows feather duster
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CASH is KING so what do we think about it ?

• FIRST rule of business NEVER run out of money !
• Second rule of business NEVER break the first
  rule !

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Cash is KING

• C F I M I T Y M..
• An Essential Acronym and principle

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CASH IS KING !

• C I M I T Y M..
• CASH FLOW IS MORE IMPORTANT THAN YOUR MOTHER !
• Professor Ken Morse MIT Enterprises

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Where Angels Tread and VCs Also Dare